US PE prices rise in February

March 04/2011

(ICIS) -- US polyethylene (PE) sellers implemented a portion of
their 5 cent/lb ($110/tonne, ?79/tonne) February price increase initiatives with
support from rising crude oil and international PE prices, buyers said on
Thursday. A large film manufacturer said most of its suppliers raised prices by
3 cents/lb in February, but a couple held the increases until 1 March.

Attention is now shifting to March contract prices, and producers were
taking firm initial stances, invoicing an 8 cent/lb increase to customers. The 8
cent/lb increment is made up of the remaining 2 cents/lb held over from February
and a separate 6 cent/lb price hike that has been pending since January. Dow
Chemical notified its customers on 3 March of an additional 5 cent/lb price
initiative for April.

Producers maintained that the February price increases covered all
grades, but high density PE (HDPE) prices were relatively soft in February. Brokers
had ample availability of competitively priced HDPE spot material. However,
prices have firmed in March, sources said.